Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi who holds the Finance portfolio on Friday proposed a ₹3,10,000 crore budget for the financial year 2026-27, marking a significant expansion in public expenditure with a continued focus on capital investment, social services and infrastructure development.
The budget maintains a strong revenue surplus position while scaling up programme expenditure across key sectors.
As per the Budget at a Glance document released by the Finance Department, total receipts and expenditure under the Consolidated Fund are estimated at ₹3.10 lakh crore. Revenue receipts are projected at ₹2,48,500 crore, while capital receipts stand at ₹48,500 crore.
The State has estimated a revenue surplus of ₹33,000 crore for 2026-27, reflecting fiscal stability. However, the fiscal deficit is pegged at ₹38,800 crore, while the primary deficit is estimated at ₹30,600 crore.
State’s own revenue continues to be a major strength. Own tax revenue is projected at ₹70,000 crore, with State GST contributing the largest share at ₹29,500 crore. Sales tax and state excise are expected to generate ₹16,000 crore and ₹10,900 crore respectively. Own non-tax revenue is estimated at ₹71,000 crore, of which mining royalty from non-ferrous mining and metallurgical industries alone accounts for ₹53,000 crore, underscoring the importance of the mining sector to the state’s finances.
Odisha’s share in central taxes is projected at ₹67,460.46 crore, while grants-in-aid from the Centre are estimated at ₹40,039.54 crore. Market borrowings and other loans together amount to ₹47,800 crore during the year.
On the expenditure side, revenue expenditure is estimated at ₹2,15,500 crore and capital expenditure at ₹94,500 crore, indicating a sustained thrust on asset creation. Of the total outlay, ₹72,100 crore has been earmarked for capital sector expenditure excluding loan repayments.
Programme expenditure has been enhanced to ₹1,80,000 crore, forming 58.06 per cent of total spending. Of this, ₹1,35,000 crore is allocated for State Sector Schemes, ₹44,500 crore for Centrally Sponsored Schemes and ₹500 crore for Central Sector Schemes. Administrative expenditure is estimated at ₹1,14,000 crore, including ₹83,800 crore towards establishment and maintenance, ₹8,200 crore for interest payments and ₹22,000 crore for principal repayment.
Sector-wise functional classification shows that Social Services receive the largest share at ₹1,25,583.39 crore (40.51 per cent), followed by Economic Services at ₹1,02,454.60 crore (33.05 per cent) and General Services at ₹78,996.91 crore (25.48 per cent).
The budget also provides ₹5,375 crore towards Disaster Risk Management Funds, including allocations under the State Disaster Risk Management Fund and National Disaster Risk Management Fund. Transfers to local bodies and other entities are estimated at ₹10,625 crore, including Finance Commission grants.
Overall, the 2026-27 budget reflects a calibrated approach balancing fiscal prudence with higher capital investment and expanded social sector spending, while leveraging strong own revenue performance — particularly from mining — to sustain developmental momentum.
